After sudden death of Islam Karimov on August 28 2016 (this fact was announced later on September 2) at a joint meeting of the Senate and Oliy Majlis (Parliament) of the Republic of Uzbekistan on September 8 2016, against the provisions of article 96 of the Constitution of the republic of Uzbekistan, which reads: “In case the President of the Republic of Uzbekistan fail to exercise his duties, the Chairman of the Senate of the Oliy Majlis of the Republic of Uzbekistan shall be vested with acting duties and powers by holding election of President of the country within three months with strict observance of the Law “On election of the President of the Republic of Uzbekistan”, the Prime Minister Shavkat Mirziyoyev was appointed as acting president of the country.
At a government meeting on September 16 2016, the presidential elections date was announced as to be held on December 4 2016. No opposition member was allowed to participate at these elections. Only 4 parties, which support the existing government and different from each other only by their names, were allowed to participate at the elections. There had been no debates during the electoral campaign. The pre-election propaganda consisted of only Shavkat Mirziyoyev praisal campaign.
Shavkat Mirziyoyev won the elections, held on 4 December 2016 with 88% of votes and was elected President.
On 14 December 2016, he was inaugurated as President. OSCE called the presidential elections of Uzbekistan as not democratic. They specially stressed on the lack of competitions and opposition forces.
We, People’s Democratic Movement “Birdamlik” and other opposition organisations were not allowed to participate at these Presidential elections. And, due to the ban for opposition organisations to participate at Presidential elections, opposition arranged alternative presidential elections.
Although the alternative elections were held symbolically, the candidates participated with their own programmes. At the alternative elections in 2015 showed the great wish of the opposition to participate at Presidential and Parliament elections. The alternative elections were won by the leader of the People’s Democratic Movement “Birdamlik” Bakhodir Khan Turkiston (Bakhodir Choriyev).
We, the People’s Democratic Movement “Birdamlik” believe that the presidential elections in Uzbekistan on 4 December 2016 were held non-democratically and against the provisions of the Constitution of the country, on the contrary by gross violation of such. We think it a gross political mistake not to allow the People’s Democratic Movement “Birdamlik” and other opposition organisations to take part the elections. We are of the opinion that this kind of mistakes will take Uzbekistan to deeper crises.
Progress of any country depends on the comprehensive implementation of reforms in all fields and these factors ensure success of such reforms. Success of reforms leads to fast progress of the country within short periods.
The base and root of any reform to be run in a country greatly depends on political reforms. Until political reforms are initial completed comprehensively, no other reforms will give any positive result. They all are left half-finished on the way.
If we want to see our country as a developed progressive state, we then have to have our country to achieve a level that it takes a position among the developed countries. Unfortunately, now we only see that development has stopped in Uzbekistan; all the fields of economy are in deep crisis.
We must develop, take our Uzbekistan forward. To do this, we must primarily study the causes why Uzbekistan has faced crisis and degradation in each filed of economy and give our complete unbiased assessment of the crisis in the country. In such an assessment, we should give grounded conclusions of our knowledge and information about social, medical, educational, cultural-moral and economic fields.
We all recognise that development of a country is subject to its economy. But most of us do not know that development of national economy is much dependent of politics. We do not know or deny the fact that the main reason of current economic crisis in Uzbekistan is the political reforms, which had started around 1991 and stopped uncompleted in 1995. We shall make maximum efforts to keep away from the political approach and try to find its causes in other sources.
In study of progress potential of world countries, we can find out that highly developed economies fall on the countries, where a strong statehood base-foundation is established. We can the USA as an example. The US is the most economically developed, progressive country in the world. It’s GDP for 2016 (Gross domestic product (GDP) is the monetary value of all the finished goods and services produced within a country’s borders in a specific period) was 18,561,934,000,000.00 (18 trillion 561 billion 934 million) US dollars. What is the reason for the US to be that strong a country? The reason is it’s the foundation of its state system, which is harmonious with democratic values. This foundation was built 241 years ago, and it is still kept strong as a state system foundation, based on the democratic values. One of the other reasons is the fact that the US were one of the first capitalistic states to move to free market relations. Therefore, the USA always takes the first position in development and progress. But there are many other democratic countries in the world, whose bases of state system are similar to those of the USA. All of these are positioned among either developed or developing countries.
Meanwhile, most of the Uzbek people are far away from the notion of political economy. For the ease of comprehension by ordinary people, we will bring very simple examples about political economy. It is indeed very important for our people to know how underdeveloped the economy of our Uzbekistan is. We shall define this in the example of the USA. If we take the US state as a building, the foundation and its first floor can be taken as a place, dedicated for its political processes, political reforms. If the remaining floors are taken as distribution of the GDP per capita, and if 1000 US dollars are taken a floor of this building, we get that today the US GDP per capita equals $57,268.92. Therefore, we can say that the US is a state they had started building its 58th floor on their building. If the US continues in this path of development and progress, as a building it can indubitably reach its 100th floor. The reason for this is that the fundamental base of the state system of the US is very strong. Therefore, no matter how high and how many floors they will have on their building, it will keep rising to the skies. (We should note here that we compared development of the USA to a building as an example. In real life, buildings are designed complete with the exact numbers of floors. And no additional floors are added to or removed from it).
Similarly, to the USA, we shall also discuss a number of other democratic states, whose bases-foundations of state system are very strong as a result of serious political reforms. Japan, Germany, United Kingdom, Switzerland, Sweden and Norway can be included in a list of such countries. Their GDP values and GDP per capita figures were the clear reasons how far these countries have developed and highly progressed. If we imagine these countries as “buildings”, we can see several high buildings.
Strength, life, number of floors, height, beauty, size, availability of conveniences and many other features of any building are directly dependent on the strength of its base-foundation. Similar to buildings, the progress, economic development, wellbeing of their population, development of military, medical, education, and cultural fields, strong establishment of national morals, respect of human rights, respect of human freedoms, freedom of speech and press, strong establishment of democratic values and other factors demonstrate the level of strength of the fundamental bases of the country. Therefore, we are studying various indicators of countries in comparison with buildings.
By expanding our range of examples, we shall learn the levels and positions of the Uzbekistan and neighbouring countries in the UN GDP list of countries and compare such with the same data for Uzbekistan. In this example, we shall discuss the General Domestic Product (GDP) per capita value of the countries.
General Domestic Product per capita
The per capita values of General Domestic Product are important economic indicators of material well-being of the given region. It is calculated as follows:
GDP in million US dollars
- USA 18,561,934 (18 trillion 561 billion 934 millions) US Dollars
- Japan 4,730,300 (4 trillion 730 billion 300 million) US dollars
- Germany 3,494,900 (3 trillion 494 billion 900 million) US dollars
- United Kingdom 2,649,893 (2 trillion 649 billion 893 million) US dollars
- Switzerland 662,483 (662 billion 483 million) US dollars
- Sweden 517,440 (517 billion 440million) US dollars
- Norway 376,268 (376 billion 268 million) US dollars
Central Asia and Azerbaijan GDP values:
- Kazakhstan 128,109 (128 billion 109 million) US dollars
- Uzbekistan 66,797 (sixty six billion seven hundred and ninety seven million US dollars (This is GDP value of Uzbekistan at official rate of US dollar to local currency. Today, the official rate (as at 4 April 2017) 3600 Soums. At the black market one US Dollar is 7670 Soums. The difference is 46.93%.
It is for many years, the difference between the official and market rate of US dollar continues to make 45-55%. GDP is a national economy indicator in free market conditions. From here, we see that the real GDP of Uzbekistan is (66,797×46,93%=31348) to make 31,348,000 US dollars. We will carry out the subsequent calculations for this indicator of GDP).
- Turkmenistan 36 573 (36 billion 573 million) US dollars. (There are questions to GDP of Turkmenistan. It is a closed country and it is difficult to trust official economic indicators of Turkmenistan. Nevertheless, we are forced to use the data of the UN on GDP indicators on the countries).
- Azerbaijan 35 686 (35 billion 686 million) US dollars.
- Afghanistan 18 395 (18 billion 395 million) US dollars.
- Tajikistan 6 612 (6 billion 612 million) US dollars.
- Kyrgyzstan 5,794 (5 billion 794 million) US dollars.
Indicators of seven countries holding the last places in the report on GDP:
- Anguilla 311 (311 million) US dollars.
206Palau 234 (234 million) US dollars.
207 Marshall Islands 209 (209 million) US dollars.
208 Nauru 182 (182 million) US dollars.
209 Kiribati 180 (180 million) US dollars.
210 Monserrat 63 (63 million) US dollars.
211Tuvalu 38 (38 million) US dollars.
Data of the report of the UN on population of some countries (as of July 1, 2016):
3.USA 324 118 787 people.
- Germany 80 682 351 people
11.Japan 126 323 715 people.
21.Great Britain 65 111 143 people
90.Sweden 9 851 852 people
97.Switzerland 8 379 477 people.
- Norway 5 271 958 people.
- Afghanistan 33 369 945 people.
- Uzbekistan 30 300 446 people.
- Kazakhstan 17 855 384 people
- Azerbaijan 9 868 447 people.
- Tajikistan 8 669 464 people
- Kyrgyzstan 6 033 769 people.
- Turkmenistan 5 438 670 people.
- Kiribati ((Oceania) Micronesia)) 114 405 people.
211.Marshall Islands (Oceania) Micronesia)) 53 069 people.
221.Palau ((Oceania) Micronesia)) 21501 people
223.Anguilla (Central America, Caribbean Region)) 14 763 people
225.Nauru (Oceania) Micronesia)) 10 263 people
226.Tuvalu (Oceania (Polynesia)) 9 943 people
228.Montserrat (Central America, Caribbean Region)) 5 154 people
GDP indicators per capita:
Distribution of GDP per capita in the developed democratic countries:
- Switzerland = 79064 US dollars.
- Norway = 71371,58 US dollars.
- USA =57 268,92 US dollars.
- Sweden = 52522,10 US dollars.
- Germany =43316,78 US dollars.
- Great Britain =40697,99 US dollars.
- Japan =37445,85 US dollars.
The average value of GDP per capita among the seven developed democratic countries makes 54 526,27 US dollars.
We were convinced that in such developed democratic countries as Switzerland, Norway, the USA, Sweden, Germany, Great Britain, Japan is strongly developed economy and the welfare levels of population are also high.
GDP indicators per capita in the countries holding the last places in the list of the UN on GDP indicators:
- Anguilla of =21066,18 US dollars.
- Nauru =17733,60 US dollars.
- Montserrat of =12223,51 US dollars.
- Palau =10883,21 US dollars.
- Marshall Islands = 3938,27 US dollars.
- Tuvalu =3821,79 US dollars.
- Kiribati =1573,36 US dollars.
The average value of GDP per capita among the specified countries holding the last places in the list of the UN according to GDP makes = 10 177,13 US dollars
Continuing comparison, we considered indicators of GDP of seven countries holding the last places in the list of the UN, which covers 211 countries. If we look at geographical arrangement of these countries, it is possible to assume that they are far from the continent that their trade is carried out only by sea and that, they do not have any production industry and the tourism is only trade created and developed. By closer examination of the GDP indicators per capita of these countries, it is possible to be convinced that they have well established economies and there is economic growth and that welfare of their population grows. Also we will be convinced that economic indicators of these countries are much better, than similar indicators of Uzbekistan. Also, it is possible to see the process of strengthening of the base of statehood, high level of freedom of speech and press. There is clear a result of successful implementation of political reforms and lack of need for additional reforms. In such countries, it is possible to observe priority of peaceful political processes, quiet shift of their governments or presidents. From here, it is possible to draw a conclusion that along with the developed countries, in such countries, there is a strong fundamental basis. In case of need, they are able to undertake strong economic reforms without any problems.
Distribution of GDP per capita in Central Asian countries and Azerbaijan with non-democratic and authoritative ruling:
- Kazakhstan = 7174,81 US dollars.
- Turkmenistan = 6724,62 US dollars.
- Azerbaijan = 3616,17 US dollars.
- Uzbekistan =1034,57 US dollars.
- Kyrgyzstan = 960,26 US dollars.
- Tajikistan = 762,68 US dollars.
- Afghanistan = 551,24 US dollars.
The average value of GDP per capita among the above Central Asian countries and Azerbaijan makes = 2974,91 US dollars.
We compared the data on the Central Asian states and Azerbaijan. Apparently, only Kazakhstan wins first place according to GDP that is among developing countries. In other six states, the GDP level is below all among the 211 countries. For more comprehensive understanding,, below we will study GDP indicators per capita in the form of buildings.
If to present the 211 independent countries in the form of the 211 buildings, then in our imagination we will receive 211 buildings.
Usually each building consists of several parts: they are the basement, floors (walls between floors) and a roof. In our examples, buildings of the countries with high rates of GDP are beautiful and big and they have strong basements, multi-storied walls and a roof. In examples of the countries of Central Asia (except Kazakhstan) and Azerbaijan, the buildings, which were inherited from the Soviet Union, generally have a weak basement, one, two or three floors and a useless roof. Almost all countries given on the last lines of the UN list on GDP of the countries of the world (these states were created for the last 50-70 years and consist of small islands) have beautiful buildings with strong basements, one or several floors and a strong roof.
We described the countries with high rates of GDP per capita, which do not need political reforms as large buildings with strong basements. We took the most beautiful building of one of the countries, with a high rate of GDP per capita and lack of need for political reforms as an image of the building of this country.
We compare the countries to low indicators of GDP and not needing political reforms with small buildings with the strong basements. We took the most beautiful building of one of the countries, with a low indicator of GDP per capita and lack of need for political reforms as an image of the building of this country.
We described the countries with very low indicators of GDP and needing political reforms as the small buildings, which were inherited from the Soviet period without any basement. We took the building of one of the countries, with very low indicator of GDP per capita and with need for political reforms as an image of the building of this country.
At the image of distribution of indicators of GDP per capita in the form of buildings, we will see that the countries of Central Asia and Azerbaijan take almost last positions in the list of the UN from the 211 countries. It is possible to draw a conclusion that among seven countries, Kazakhstan is the country with partial need for political reforms; meanwhile, in other six countries there is a requirement for political reforms.
By comparison with other countries, we found out that Uzbekistan is in a state of crisis. At the same time, we will consider positions of the buildings of state systems in three Baltic countries, which had also been parts of the former Soviet Union.
GDP indicators in the Baltic States:
- Lithuania 42 776 (42 billion 776 million) US dollars
- Latvia 27 945 (27 billion 945 million) US dollars
- Estonia 23 476 (23 billion 476 million) US dollars
Population in the Baltic States according to the UN (as of July 1, 216):
- Lithuania 2 850 030 people
- Latvia 1 955 742 people
- Estonia 1 309 104 people
Distribution of GDP per capita value in developing democratic Baltic States:
- Lithuania = 15008,96 US dollars
- Latvia = 14288,69 US dollars
- Estonia = 17932,87 US dollars
The average value of GDP per capita in the Baltic States makes = 15743,42 US dollars.
It is obvious that GDP per capita indicators of the Baltic countries – Lithuania, Latvia and Estonia, once part of the Soviet Union, are 15 times were higher, than this indicator for Uzbekistan. These countries continue the way to progress. We can draw the following conclusion over the Baltic countries: they finished political reforms in their countries long ago, opened a wide way to democratic values; both parliamentary and presidential elections are held peacefully and without problems. For the past 25 years, presidents have changed minimum 4-5 time in each of these countries. And what about us?
Now we will move on to study total world GDP values.
75 212 696 (75 trillion 212 billion 696 million) US dollars
According to the UN, the population of the earth (as at July 1, 2016) makes 7 432 663 275 people.
The World GDP per capita:
10 119,21 US dollars.
Let’s consider the difference of welfare of people in Uzbekistan in comparison with other countries.
The difference between GDP per capita values for the world and Uzbekistan:
Whole world: 10 119,21 US dollars. Uzbekistan: 1034,57 US dollars = 9,78.
We get the difference in 9,78, that is nearly 10 times. We are left behind the average level of welfare worldwide! This means, we live among beggars! Is it not awful!?
I think, we draw a corresponding conclusion about a deplorable state and crisis in Uzbekistan. Now it is necessary to pass to the political reforms, which are a basis of our economic development and progress.
To take a deserved position among the countries of the world, we need to completely destroy that puddle-wall building, which hardly holds the only floor it has! Instead, we need to take the base of one of the developed, progressive and democratic countries like the USA as a sample, which is capable to bear, if required, 100 or more floors and to found a strong beautiful and convenient modern building with high walls and a strong base.
So, how is this possible to implement?
The base-foundation of a strong and comprehensively convenient, beautiful building is implementation of large-scale reforms over all country as the first step.
This means starting construction of a strong building capable to compete with beautiful and large buildings in the world, it should be noted that the most important part of any building is its basement and the first floor to be built. A basis of the basement and the way chosen by the state, a platform are a statehood basis. Such basis has to sustain any internal and external shocks, natural cataclysms, wars and accidents. The USA, Great Britain, France, Germany, Japan and dozens of other developed democratic countries can be striking examples of the state system buildings with such a base. The fundamental basis of these states is arranged so strongly that they can sustain any internal and external political concussions, blows, storm and crises. And, the first floor over this base is the level, which shows peaceful change of the power through political activity and free elections, also shows the result of all political processes. The executive power and legislature – parliament and judicial system are usually located on the first floor. Irrespective of the level of activity or threat of the politicians, who are on the first floor they cannot affect the basement of the building. That is, they do not want to destroy this base, and will not be able even if they wish. This means, nothing can affect a strong basis-foundation of the buildings of the countries.
Here we will give an example of presidential and parliamentary elections in the democratic countries with the high level of the competition. Any results of elections cannot break the country’s state system. Though the new president or parliament come to the power through free and fair elections, they continue to rule the country, as well as the predecessors. The country does not deviate from the usual way of development because of a stepping in of the new government, and continues the development systemically. It does not do harm to the population of the country, its businesspersons, and representatives of the industry. No businessman or a citizen of the country will even think of leaving the country because of the results of elections. The new president or parliament or government officials do not try to put someone in prison by slander and to appropriate their property. Any elections held in the conditions of free competition, respect for democratic values reduce the share of corruption, and increase the priority of laws. Such free elections held by democratic methods open way to increasing investments into the country, the country continues its economic development. Thanks to the democratically established ruling of law in the economically developed countries, the president of the country and any ordinary citizen have identical rights before the law! Nobody, even the president of the country is put above the law. And what do we have in Uzbekistan?
In Uzbekistan, until his last day of the life the former dictator president Islam Karimov held bridles of government of the country in hand, and the current president also continues the old way of the previous president without carrying out any political reforms. For this reason, in the next ten years Uzbekistan will live without any economic growth and progress.
The module of a private property – guarantee of progress
There are several modules of statehood with democratic values in the world. It is possible to divide state system modules into high social protection, partial social protection and insignificant social protection. Finland, Norway and Sweden are considered to be the countries with strong social protection, Canada and other countries of Europe can be treated as modules with partial social protection, while the USA, Japan and Singapore are the countries with the statehood module with low social protection. The above-named countries, referred to the third category modules achieved this level due to creation of a basis for fast development of their national economy, fast enrichment of the population and conditions for earning big moneys by citizens.
Existence of the developed and developing monarchic, different democratic countries in the world, founded by different kingdoms where welfare of the population is at the different levels is known. During our researches, we deeply studied the modules of statehood of all countries. However, in the course of the choice, among all countries we chose modules of those capitalist countries, which are close to our outlook, culture and morality and where democratic values are widely developed. At the same time, we considered a possibility of creation of specific democratic values in Uzbekistan in the future.
On the basis of our objective observations, we found out that statehood modules with the high or partial level of social protection are not quite suitable for Uzbekistan. Such a module will be interfered in every possible way by the regime, established by the late Karimov and the political situation continued by his followers. The policy pursued by him, led the Uzbek people to political, economic, moral and cultural poverty. So therefore, considering that the Uzbek people are not yet ready to accept one of the above-stated modules of statehood, we are of the opinion that none of them will be successful for the Uzbek people. We believe that statehood modules with low social protection, inherent in system of “cruel capitalism”. In turn, apologizing to our dear readers for the use of the word “cruel”, we will partially expand meaning of this word.
Yes, it is true that the module of “cruel capitalism” is just that necessary module for us, Uzbeks. The cornerstone of this module lies in line with the wise words of our ancestors, in other words, “Who does not work, neither do not eat”. That is to mean that, those who will work more will earn more and will grow rich faster.
On the statehood module with the high or partial level of social protection, people, who earning money by hard work, pay up to 40% of the income in taxes. Unlike it, the population of the countries with the module of “cruel capitalism” pay maximum 15% of their income as taxes. It means paying almost three times less taxes.
If we take the standard of living of people in the countries where the module of “cruel capitalism”, such as the USA, Japan or Korea is used, then there is a clear reason of their fast development for a small period and growth of welfare and income of the people. This means, the module of “cruel capitalism” is a guarantee of progress”. In addition, effective use of this module serves for successful improvement of welfare of the population. In future, we will begin to call this module “the module of private property (Mulkdorlik – private property)” – a system of a private property”.
Below we will consider answers to the questions of ways of the building of the fundamental basis of the system of private property, the reasons of unattractiveness of Uzbekistan for foreign investors and lack of interest of investors to make investments in Uzbekistan.
- Double landlocked geography. According to data of Wikipedia, Uzbekistan occupies the space — 448,900 sq.km. Population (2015) makes — 31,025,500. We border with Kazakhstan, Kyrgyzstan, Tajikistan, Afghanistan and Turkmenistan. Usually the sea transport is considered the cheapest. Location of any country by the sea positively influences creation of commercial relations with other countries of the world by means of cheap marine transport. This factor also gives big appeal to investors. Unfortunately, Uzbekistan has no direct exit to marine routes. Access to sea requires a journey by train or truck transport through two countries. Besides, use of ports in other countries is associated with payment for their services. Large numbers and volume of such expenses not only cause negative impact on decisions of businessmen, but also sets the investors wishing to invest in economy of Uzbekistan to think seriously.
Here, the State of California of the USA would be expedient to be shown as an example. California occupies the space of 411 thousand sq.km. The population is 39 250 017 (the report for 2016)  people. The GDP of the State of California for 2016 made 2 trillion 514 billion US dollars. It makes 13,4% of all the GDP of the USA, which was 18 561 934 (18 trillion 561 billion 934 million) of US dollars.
Let’s pay attention to the area occupied by Uzbekistan and the State of California. California occupies the space – 411 thousand sq.km. The area, occupied by Uzbekistan makes — 448 900 sq.km. Our comparison shows that Uzbekistan occupies 37 000 sq.km more land than California. The population of California is more than that of Uzbekistan by 8 224 517 people.
In turn, we will compare GDP indicators defining the economic strength. The GDP of the State of California USA made 2 trillion 514 billion US dollars. GDP of Uzbekistan made 31 billion 348 million US dollars. The difference: 80,19 times!
Many of our activists repeatedly visited California on work and travel. Here they claim that the climates of California and Uzbekistan, fertility of the earth, water and deficiency of water, the mountains and valleys, even steppes are almost identical, but the only difference is that California is on the ocean coast.
However, we believe that our activists did not consider one factor. The only invisible thing – the State of California is a part of bases-foundation of the state system of the USA. Had the bases of the state system not been constructed strongly, despite its seaside position, the GDP of California would not be 80.19 more than that of Uzbekistan. This causes to draw a conclusion that the fundamental basis of the state system has to be that determining of economically developing countries! The State of California, which we studied above, is an obvious example of this fact.
- Political reasons. The State system module. The module of statehood of Uzbekistan is based on autocracy, dictatorship. Transparency suffers in any country with domination of authoritative ruling and dictatorship. Such shortcomings become obstacles to attraction of investments into the country. The lifelong and permanent ruling of dictator Islam Karimov in Uzbekistan for 27 years by rigid control of the government not only led to creation of identical thinking in the country, but also seriously undermined investment appeal of the state. As investments into non-democratic countries negatively influences investors, for there is a probability of ruining their business. Therefore, despite the high level of competition, investors prefer to make investments in democratic countries. Smooth and peaceful process of change of the president or the government in these countries is the main reason for that. No elections cause any negative impact on activity of businessmen and investors. Investors feel safe and happy.
- Freedom of speech and press. In Uzbekistan there is no freedom of speech and press. Internet speed is very low and Internet provider services are extremely expensive and are under constant control. Especially, the websites of the oppositional organizations are under strictly censored. Television, radio, newspapers and magazines of the country are also closely controlled by censorship. Investors stay clear of the countries, civil societies, where a person cannot openly express his opinion.
- Rule of law. In Uzbekistan there is no rule of law, there is no criterion of justice. Even the current president of the country came to power in defiance of the Basic Law – the Constitution and laws of the country. To-date, dozens of thousands of businessmen became victims of injustice, lawlessness and violence, and this process still continues. Law enforcement agencies – the Ministry of Internal Affairs and National Security Services conduct the activity exclusively relying on injustice. There were daily and usual cases of unfair robbery of businessmen and rich people, appropriation of money and property by fraud, blackmail and threats, imprisonments of any resisting on different slanderous charges. Reporting of such massive cases on the websites www.birdamlik.info, www.mulkdor.com , on Radio Svoboda/Liberty and BBCuzbek, in reports of U.S. State Department and other organizations, set investors to serious thinking, who are ready to invest capital into the economy of Uzbekistan.
- Corruption. Corruption in education. In Uzbekistan bribery and corruption are widely developed. Almost all branches of the national economy of the country are in the swamp of corruption. The highest level of corruption in the field of science and education is sad. It will not be an exaggeration to say that Uzbekistan is the only country among the countries of the world, where education and science is corrupted. According to the reports, even in the disadvantaged countries of Africa, science and education are free from corruption. Corruption of our education system indicates extremely low level of our morality. While those who have intentions to make investments in Uzbekistan also have children. Like any parents, they also wish to give their children to good schools. But, seeing the level of corruption and bribery in education in Uzbekistan, neither investors, nor members of their families will ever wish their children to get education at schools of Uzbekistan. And it undoubtedly make any investor to think. On the other hand, the level of education of the graduate, who has graduated from a higher education institution, is also very low. Needless to say, to invest capital into our country, the investor will rely on resources of educated and talented people. This is quite natural. But, having found out the low level of skills and abilities of the experts who graduated from higher education institutions of Uzbekistan and knowing high cost of involvement of talented experts from foreign countries, investors make decisions to bypass Uzbekistan and to invest in the countries where they can find highly qualified professionals.
- Corruption in taxation and customs authorities. The government institution of each country has to work under specific and unambiguous laws. In Uzbekistan, as well as other public institutions, tax and customs bodies are considered as strongly corrupted institutions. The level of corruption and economic crimes is in such a critical state that any investor, who addresses them on business, will precisely get into a difficult situation. Investors, who got used to conduct their activities in the developed countries within laws and rules, will have to surrender to the injustice, lawlessness, bureaucracy, infinite promises and bribery in the country. As a result, investors are concerned about all of this. Thus, they choose to make their investments in the developed countries where laws have command and there is no corruption, than to face these negative phenomena in Uzbekistan. They just ignore Uzbekistan and do not wish to hear anything any more about it.
- Politics. Policy of a closed society. It is very bitter for us to recognize that Uzbekistan still remains a closed society for the world community. Investors not only do not want to make investments into the countries where human rights are violated, they just do not want to go there. For in a closed society, there are so many concealed problems. Only those investors, who are desperate and those, who refused this world, can come to the closed societies. But, here, we are sorry to say, you can hardly find any investor, who has refused this world!
- Problems of policy of currency exchange and credit regulation. The policy of currency exchange and credit relations in Uzbekistan still remains problematic. Now, 4 different exchange rates operate in the country. On April 12, 2017, the official rate of the Central bank of the Republic of Uzbekistan was 3650 Sums per 1 US dollar; the same official rate of the Central bank at the currency exchange of the country was 3832 Sums; illegal average rate at the black market was 7940 Sums; another illegal non-cash exchange rate in the country was 9528 sum. This explains the improper currency exchange and credit relations policy, which is out of control.
Actually, the main part of both economic and political reforms was to be completed in 1995; and in 1996, the policy of the currency exchange and credit relations was to be finalised. However, unfortunately, this problem kept aggravating year after the year. The government did not look for a way of elimination of the problem. As the small group of officials was interested in running such policy in the currency exchange and credit relations system. So, why would a reasonable investor invest money in the country where the policy of currency exchange and credit relations is in such a crisis? Is possible to find such silly investors anywhere?
- Lack of private ownership rights on land. In many countries of the world, land is private property, and it is an indefeasible right. Unfortunately, in Uzbekistan, the foolish concept “The Earth Belongs to the State!” which was inherited from the Soviet period still dominates and this is concept deeply took its roots in the minds of our people. Cultivation of cotton, grain and a silkworm, being the state order continues to oppress farmers. Under cover of distribution of lands to the population, government officials illegally sell them the land for bribes and get rich. The government of Uzbekistan still does not want to think of distributing land to the Uzbek people free. We cannot believe in any way that any honest investor could make investments in the country where the state takes away lands from people and exploits them as slaves. Lands in the territory of Uzbekistan are property of the Uzbek people! The land has to be distributed free of charge to the people as private property with the right of lifelong use!
- Attitude towards property/asset owners. All of us perfectly understand the morbidity of the issue of becoming an owner of something in Uzbekistan. Article 36 of Chapter IX of the Constitution of the country “Economic and social rights” reads: “Everyone has the right for property”. Unfortunately, in real life, it absolutely not so. There is a number of problems here. Law enforcement agencies, courts, bodies of prosecutor’s office jointly continue causing both physical and psychological impact not only on local owners, also on foreign investors businessmen by various slanderous actions. Some are killed, and some are put in prison and thus they appropriate their property. So, what kind if an investor in the right mind will invest money in the economy of Uzbekistan? Are they stupid to this degree they?
- Very poor quality of medical services. In Uzbekistan the medical system is in a crisis in the true sense of this notion. The state still continues financing it. Because of insufficient financing of the system, the buildings of medical institutions are in a bad condition, and it is followed by deficiency of modern medication and equipment, and corruption prospers. There are no sufficient conditions for work. Salaries of medical specialists are very low, for example it is 50 times below than the level in the USA. For this reason, many experts are forced to leave and work in other countries, including Arab countries, for example even in Yemen. The medicine has to be completely privatized. The businessmen and investors respecting themselves will not arrive to the country where the no respective system of medical services is adjusted.
- Absence of institute of dual citizenship. There are many businessmen in the world who are citizens of two or more states. In Uzbekistan, the issues of departure from and entry into the country and registration of citizenship are still not resolved; dual citizenship is not allowed in country. It represents a serious obstacle for entrance of investors to Uzbekistan. This problem remains essential.
- Failures in electric power supply. In the developed countries, there is no concept of power outage at all. If foreign investors learn about power outages with the country even for 1-2 minutes, not to mention hours-long shutdowns, they will elementarily refuse to come to Uzbekistan. As investors will constantly bypass Uzbekistan with no conveniences to investors and prevailing problems with the practice of frequent power outages.
- Shortage of natural gas. If businessmen learn or hear about shortage of natural gas in the country, they will undoubtedly go crazy. As, investors cannot even imagine a situation when the country exports natural gas to foreign countries in huge volumes while the population suffers a burning shortage of gas. Also, if investors learn that the population is forced to pay large amount of money for unused gas, they will probably go crazy. Not to get out of their minds, they will better try to hear nothing about Uzbekistan.
- Problems with drinking water, water in canals and ditches. In some countries, the water supply is problematic, but investors constantly monitory this issue. If they learn that the government is not able to find the solution of this problem, in fear of being left without water, they will put the end to the decisions to invest capital in the economy of Uzbekistan.
- Sewerage issues and waste processing.
In the modern world, the issues of waste and sewerage have to be addressed at high-tech level. Any investor will treat Uzbekistan with extra care. Foreigners who know about the problems with the sewerage and waste processing in Uzbekistan, not only will not invest money in the country, they will even refuse to visit the country as tourists.
- Problems on highways. It is already almost 27 years as the highways of Uzbekistan did not see any repair. Every year, some cosmetic repairs are done only on main roads for demonstration. All highways of Uzbekistan have to be constructed again and repaired. The solution of this problem will be very difficult and will also involve much cost. Insufficiency of state funding and the same corruption component in the system are the reasons of this deplorable state. Until all highways are reconstructed and repaired, the question of arrival of investors to the country will remain difficult.
- Courier and postal services. The modern system of post and courier services is very widely developed and works quickly. Any investor wishing to invest in Uzbekistan will take an interest especially about the level of co-ordination of post and express services. Actually, the existing post service of Uzbekistan does not suit foreign investors in any way. Considering this situation, it is necessary to organize services of the international services FedEx, DHL Express, Schener AG, and YRC Worldwide. It is also necessary to create bases for establishing healthy competition among such companies so that the post and courier services can reach the level of satisfaction of investors. We are not able to afford to deceive investors by the arranging one or two points of service or offices of the above-stated companies only in large cities. Only when these companies will have terminals at our airports and will carry out the post and courier services in all small and large cities, we will be able to be proud of such services. Otherwise, without successful post and courier services, expectation of arrival of investors will be useless.
- Problems in air traffic. Any airport is a face and a mirror of the country. Undoubtedly, seeing that mess and the disorder at the Tashkent international airport, any investor arriving to the country, will indubitably be disappointed in the policy pursued by the state. Usually, large potential investors prefer to fly by their personal planes. But the problems that exist at the airports of Uzbekistan ruin their wishes. Our airports lack the conditions for reception and sending (landing and take-off) private planes. Naturally, the impossibility of reception and sending or impossibility of obtaining a landing permit and take-off of private planes disappoints investors. Why has any investor to invest money in the country, where they not trust him?
- Problems in hotel services. In many hotels of Uzbekistan there are no conference rooms and meetings halls. The existing hotels in Uzbekistan are far left behind modern hotels. In hotels of the developed countries built over the last 50 years, there are at least two conference rooms and halls for meetings. One can even to find minimum ten hotels in a small city. Especially, modern hotels are not intended only for spending a night and leaving in the next morning. In conference rooms of hotels, investors hold different meetings, meetings and actions for conducting the business. And what about our hotels? Not quite so. Therefore, it is a shame to us in front of investors because of our hotels.
- Civilised rest. Uzbekistan is a Muslim country. Our cultural outlook, the Uzbek traditions, and history differ from the western culture with their originality. Nowadays, the level of investments and globalization is very high. We cannot ignore this fact. We cannot live to be hidden away from the rest of the world. We want it or not, we are forced to be integrated with the world community. The most priority question for us is attraction of huge investments into our economy. We should not forget that the investor coming to the country, come here to not only work, and also to live, have rest and have a good time. Each person separately taken is an individual world. Any person has his own interests and hobbies.
Everyone wants to live the way they want. Therefore, in Uzbekistan it is necessary to build casinos, opera and ballet theatres, drama theatres, cinemas, beaches, to organize winter and summer travels to mountains, steppes and valleys, to create network of cafes, bars and restaurants, nightclubs and conditions for entertaining sports.
- Obstacles from Islam. Islam in Uzbekistan continues to be against the secular system of society. If we invited investors not only from the western countries, from Japan, Korea or China but only from the Muslim countries, Islam would not begin to oppose to us. Unfortunately, we expect investments from the countries, which are especially not Muslim. According to the Constitution, the religion is separated from state. Nevertheless, the Uzbek imams began sticking their nose into public affairs long ago. Their decision to recognize a modern banking system as haram, their appeals not to use services of banks sets investors thinking. As any investor knows well that with religious ignorance, there will be no economic development. Until the government of Uzbekistan deals with ignorant imams, and does not stop their interference in public affairs, we will have no need to invite potential investments due to limitations.
We noted the reasons of disinterest of investors to invest money in Uzbekistan. First, we have to remember that investors also living people. This means that in those countries where they invest, there have to be all conveniences for their activity and that nobody and nothing could threaten their property. Being a good economist, each investor is also a politician. They closely watch political events in the world, especially carefully study politics, social sectors, economy, cultural and moral life in those countries where they intend to make investments.
Below, we will see ratings of various countries made by the different organizations for different fields.
The image of Uzbekistan in the eyes of various organizations of the world (actually, the governments of Uzbekistan and Turkmenistan hide actual data and deceive the world community by publication of false economic data).
The Index of Economic Freedom 2017
Uzbekistan takes the 148th position among 180 countries of the world in the index of economic freedoms. (We consider that in reality Uzbekistan had to stand on the last position. In order to improve the reputation before world the public, Uzbekistan always issues false data and deceives the world community).
Business Bribery Risk Assessment. 2016.
The following ten countries have the lowest business bribery risk score: The best countries with the lowest level of bribery for business:
- Hong Kong
- New Zealand
Ten countries with the highest level of bribery for business:
- South Sudan
Appendix F: Rating of countries of matrix TRACE
Table F.1. The rating of TRACE of the countries on the level of bribes for business
The rating of the countries on TRACE 1. Ireland 2. Canada 3. New Zealand. 4. Hong Kong 5. Sweden 6. Finland 7. Singapore 8. Japan 9. Germany 10. USA 11. Georgia 12. Norway 13. Netherlands 14. France 15. Chile 16. Switzerland 17. Republic of Korea 18. Lithuania 19. Great Britain 20. Austria 21. Denmark 22. Estonia 23. Luxembourg 24. Iceland 25. Latvia 26. Belgium 27. Slovenia 28. Panama 29. Australia 30. UAE 31. Poland 32. Portugal 33. Italy 34. Macedonia 35. Republic of South Africa…
… 177. Kuwait 178. Venezuela 179. Liberia 180. DR Congo 181. Mauritania 182. Tajikistan 183. Algeria 184. CAR 185. India 186. Eritrea 187. Cameroon 188. Vietnam 189. South Sudan 190. Fumes 191. Burundi 192. Guinea 193. Cambodia 194. Uzbekistan 195. Angola 196. Yemen 197. Nigeria
In the rating of level of bribe threat for business for 2016 among 197 countries, Uzbekistan took the fourth position from the last. Only Angola (Africa), Yemen (Africa), and Nigeria (Africa) were positioned after Uzbekistan. Naturally, any investor wishing to bring investments is very well informed about this. Now, can we fancy expecting investors to Uzbekistan from outside??
Reporters Without Borders releases – Press releases of Reporters without borders
2016 World Press Freedom Index – 2016 an index of freedom of the press in the world
In the index of freedom of the press among the countries of the world for 2016, Uzbekistan took the 166th place among 180 countries. This is a very sad situation.
– for more information visit:
Freedom in the World 2017 – Level of freedoms in the world for 2017
Worst of the Worst – the Worst of the worst
From 49 countries recognized as Not Free, 11 states have the worst scores by the political rights and civil liberties.
(According to this rating, it becomes obvious that Uzbekistan is in great need in political reforms).
|Country/territory||Total score (from 100)|
Rating on corruption among 176 countries of the world according to International of Transparency International.
|1||Denmark||90||91||92||91||90||Europe and Central Asia|
|156||Uzbekistan||21||19||18||17||17||Europe and Central Asia|
We partially considered the main problems interfering attraction of foreign investments into the economy of Uzbekistan. The solution of the above-stated problems will not attract investors to the country soon enough. As the potential investor is also a good political scientist. Before making decisions to make investments in the country, they get closely interested in the political module and fundamental bases of state system of the country. They also study the conditions created for investors in the country. If the investors find positive answers on these three questions, they will be able to put big investments into Uzbekistan in future. Having fallen in love with Uzbekistan, and having believed in the political system of the country, they may tie their personal relationship with Uzbekistan. Many investors will get family and friendly relations and will become citizens of our country. And it will give an impetus to a bigger development of our homeland.
We have considered many problems that exist in our Uzbekistan. And we compared these problems with problems of other countries and drew partial conclusions on the crisis in political, economic and other sectors. In the course of creation of the module and bases of the state system, we will be expediently engaged in solution of many tasks.
Several of our activists gained experience of construction of buildings, erections and houses abroad. According to our activists, for high-quality performance of works of different parts of buildings, for example, of the installation of the foundation, construction of walls, roofing, internal finishing, plumbing, an electrical wiring, installation of doors and windows and other parts, people contract different contract organizations. As the basis of the building begins with construction of its foundation, only experts in foundation building can only cope with this task. And others simply wait for them until their time comes. After completion of works on construction of the foundation, the specialists in construction of walls – floors and other components of the building will successively perform their part of works.
We reviewed construction of the simple building. In policy creation of bases of the state represents other concept is absolute. So, what ways it is carried out?
Almost in all his speeches and addresses, the leader of the People’s Democratic Movement “Birdamlik” Bakhodir Khan Turkiston speaks about the prime need of implementation of political reforms in the country, and uselessness of any other reforms without completing political reforms. And actually, there is a burning need for political reforms are necessary in the country.
Usually, the project of construction of buildings and erections is developed by architects and investors. After the approval of the project, other remaining works are performed by builders of the foundation. Thus, other builders also consistently take over their part of work and at last, inhabitants accept the beautiful and strong building.
In politics, the political organizations – the movements, parties create the project of the module of the state system for the country, and after its approval of their congress, begin to build the base of such state system module. Naturally, as well as at construction of any building, in politics, the state system is started by construction of its basis.
At the congress held on April 26-27, 2014 in Saint Louis, USA, the People’s Democratic Movement “Birdamlik” accepted the module of the Private Ownership – system of Property (Mulkdorlik module – Mulkdorlik – Private Ownership) as main structure for the political system of Uzbekistan. The system of the Private Ownership represents a democratic society founded on mass private ownership. The concept of mass private ownership is an extended type of liberal economy with free market.
The people’s democratic Movement “Birdamlik” founded on April 10, 2004 which continues its peaceful and nonviolent fight against the existing system of karimov-mirziyoev on the basis of free and voluntary will of people of Uzbekistan, assumed responsibility for carrying out political reforms. Despite extensiveness and difficulty of the notion of political reforms, we will try to give you a short description of this issue. You can find many articles and guides at the official site of the People’s Democratic Movement “Birdamlik” at www.birdamlik.info.
The main objective of the People’s Democratic Movement “Birdamlik” is coming to power using peaceful and nonviolent methods, permission for holding free and competitive presidential and parliamentary elections within 6 months thereafter. The people’s democratic Movement “Birdamlik” also set a goal of turning into the Party of Liberal Economy (Liberal and Economic party) “Birdamlik” within 6 months. During the electoral campaign, the “Birdamlik” Party of Liberal Economy will be engaged in broad explanatory works among Uzbekistan people about the system of the Private Ownership (Mulkdorlik Tuzumi), and intends to hold lawfully the position of president and to receive majority of votes at parliamentary elections.
After coming to power, we will consider holding completely democratic, transparent and competitive elections as the first step as the correct beginning of political reforms in Uzbekistan and we will conduct our activities under the conditions of free democratic competition with other parties and for the benefit of development of Uzbekistan. As the fundamental political basis of Uzbekistan, the Private Ownership state system module will trigger consecutive implementation of other reforms.
As founders of the state module of the Private Ownership, we plan carrying out full and large-scale reforms of fields of economy, brought to a state of crisis. We realize that for due implementation of the reforms, the country has to have enough resource in the gold and foreign exchange reserve. Everybody perfectly understands the impossibility to implement the planned reforms without money. And what to do if there are no funds in the state reserves devastated during karimov-mirziyoev ruling? How shall we find means?
We have to choose the way of Europe, Germany and Japan, destroyed after World War II. It is necessary to adopt the successful experience of South Korea and Singapore. If to look at the history of political and economic development of these countries, we will be convinced that they reached today’s level of development thanks to their close and friendly interrelations with the greatest and strongest country – the USA during the 50-80’s of the last century. We are lucky for there is development in the countries, shown above and more than other 100 countries. If we manage to establish really friendly relations with the USA and other democratic countries, to undertake political reforms in full and to open a way to other reforms, we think that the developed power, headed by the USA, will give us their helping hand.
After coming to power, “the Private Property Owners”, that is us, it is necessary to complete a considerable amount of works and to have enough time for transition to the stage of development and progress, for opening of gate of Uzbekistan for investors and creation of respective conditions for them.
Above we studied causes of impossibility of investors to make investments in Uzbekistan. We will briefly share our vision of elimination of these problems. Actually, elimination of any problems demands much funding, time, knowledge, talent and efforts. For our reader, we give only some general and short explanations.
It is already for several years, we, “the Private Property Owners”, have intensively been doing some research work on elimination of crises in Uzbekistan and so far came to the following decisions.
- The first step. Creation of convenient conditions for facilitating interest of investors to invest into the country. Achievement of full transition of the country to market economy, attraction of investments.
- The second step. Together with investors and local businessmen, producers, peasants and farmers, and all Uzbek people to form a free, competitive economic environment, drive our country to the level of developed countries.
To have an opportunity to take the first step, first of all, the country will require at least 200 billion US dollar worth of loans within the first 4-5 years. These funds will be spent for elimination of consequences of the crises. It is expedient to receive one-half that is 100 billion dollars, from the U.S. Government and other half from European countries and other developed states as aid or loans.
Naturally, the USA and other democratic states will not simply and at once so will not make the requested capital available simply and instantly on a silver plate. They will demand from us wide expansion of democratic values, ensuring freedom of speech and press in the country, a guarantee of respect for human rights, implementation of important political reforms, opening of borders, creating favourable conditions for investors and positive solution of many other questions. In reality, these terms, demanded from their part, are as necessary to us air to breathe. These tasks correspond with reforms in political and economic sectors. This means that taking our country to a stage of reforms and changes, we should fulfil their requirements in the near future.
If we manage to receive the above-stated funds of 200 billion US dollars within 5 years (about 40 billion dollars a year), at most in 2 months, we will need to put currency exchange and credit policy in order and to eradicate the black foreign exchange market. Banks of Uzbekistan will begin to exchange local currency freely. In a year, new currency “Turon” will be introduced for circulation in the country. By then, we will be able to say that establishment of currency and credit policy is fully complete. As a new profession, we will urge “speculators in foreign currency” to become brokers on privatization of land. Later, this question will be considered in a separate article in more detail.
Within 4-5 years, we will completely refuse from the state order for cultivation of cotton, grain and a silkworm, and free distribution of the earth to the people and its privatization will begin. Naturally, it is a very difficult and complex challenge. Our compatriots, who are interested in this mater, can visit our site and review the articles on the topic.
Within 4-5 years – full reorganization and repair of all railways and automobile roads will be carried out.
In 4-5 years, the set of problems, associated with drinking water supplies and processing of sewage will be eliminated. Unresolved issues will consistently be eliminated according to plans of reforms.
In 4-5 years, the issues of electric power supplies will be completely resolved. Uninterrupted supply of electric to population will be completely resumed.
In 4-5 years, the issue of gas supplies to population and industrial outfits and automobile fuel filling systems will be completely resolved.
For the first 4-5 years, the education system and science will have to become priority. Instead of the existing Latin scrip based alphabet, the new alphabet, brought to perfection by the leader of the People’s Democratic Movement “Birdamlik” Bakhodir Khan Turkiston, also based on Latin script will be introduced. Kindergartens, day nurseries will be free, reorganization or overhaul of at least 10 000 schools will be completed. Free school transport for children will be organized. Pupils will be provided with free school uniforms, hot meals for three times, medical care, and school supplies. The hard work of teachers will be rewarded by deserved salaries. All higher education institutions of the country will be completely privatized. At our website, we have posted some articles addressing this issue. We recommend reviewing these articles.
For 4-5 years, transition of privatization of the health sector will begin. The system of medical insurance and a market of medical insurance will be created in the country. And the insurance system will be popularized. Economically needy people will be taken under social protection of the state, and their medical expenses will be covered at the expense of the state. Articles on this subject are also posted at our website. We recommend to get acquainted with this subject in more detail.
In 4-5 years, all our fellow citizens, who are labor migrants who work in Russia and other countries, will be returned to Uzbekistan. They will be completely provided with land or work, they will be given help in receiving good work and income in their homeland.
In 4-5 years attempts will be made for positive solution of use and the rights for the Caspian Sea by negotiating with our neighbors – Kazakhstan and Turkmenistan. Work on presence of Uzbekistan ports on the Caspian Sea will begin, and we will bring up the issue of presence of land territories of the country en route to the Caspian Sea.
Dear reader! Each organization conducts serious researches in a way of implementation of plans, developed for themselves. Success of the political organization generally depends on four factors. It is 1) the political ideology, power and national orientation of purposes, 2) charismatic abilities of the leader of the political organization, 3) a strong developed team of the political party, and at last, 4) financial stability of the political organization. Within the opportunities, we tirelessly work and we eliminate our defects. These are our internal issues. Therefore, we consider that these issues we will be resolved only together with our activists and colleagues.
We partially presented our plans to yourselves. The difficulty of implementation of some reforms is obvious to all of us. Nevertheless, despite all difficulties, we will walk forward firmly, and have to achieve the goals. Some reforms, especially, main parts of details of reforms of currency exchange and credit policy, on privatization of lands, in education and science and health care systems are known only to our chairman Bakhodir Khan Turkiston and to its closest associates. In more detail, the relevant information will be provided to the readers when we get to actual implementation of these reforms. Until then, we would not like that other political organizations competing with us copied and appropriated our program. When time comes, we will disclose all details of our reforms for our dear readers.
People’s Democratic Movement “Birdamlik”